Free trade agreements signed in December between the European Union and Peru, Colombia and six Central American nations have drawn criticism from human rights advocates.

Peruvian trade minister Carlos Posada described the deal as the country’s most important trade agreement and said it could add up to 0.7 per cent to economic growth in the long term.

But 40 NGOs including the Inter-American Human Rights Platform, Enlazando Alternativas and Friends of the Earth issued a joint statement criticising the agreement. Though it includes some references to human rights, social and environmental standards, unlike other provisions, these are not binding. The groups warned the agreement condones human rights violations and environmental destruction caused by European agro-fuel exports, mining and energy companies.

Chair of Friends of the Earth International, Jagoda Munic, said, “European corporations should comply with the standards set up by the European Union, including human rights laws when they operate outside Europe. Unfortunately, this is not always the case.”

Commentators also raised concerns that the agreements with Peru and Colombia, two of the world’s largest cocaine producers, would allow money from drug-trafficking to enter the EU.

Dutch NGO SOMO stated that, “The power of authorities to apply controls to capital flows is being restricted by the FTA. However, there are no particular articles in the agreement that ensure that instruments and regulations are in place that effectively prevent and halt illicit flows. This contrasts with other trade agreements the EU has signed, which have stronger commitments of cooperation and implementation of actions against money laundering, crime and tax evasion or avoidance.” Up to US$7billion is laundered in Peru each year, according to UN estimates.

The agreement will supersede an existing preferential tariff arrangement. Trade between Andean nations and the EU was worth US$27 billion in 2011.